EU for Ukraine Initiative announced

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European Investment Bank approves interim reconstruction fund for Ukraine, providing priority project funding and technical assistance. 

The board of directors of the European Investment Bank (EIB) has approved the EU for Ukraine Initiative that will serve as a temporary scheme which will enable continued EIB engagement in the country until the longer term picture is clearer.

As part of the EU for Ukraine Initiative, the EIB will establish the EU for Ukraine Fund to enable European Union member states, the European Commission and other countries and donors to support reconstruction and recovery in Ukraine. The EU for Ukraine Fund will provide credit enhancement to EIB loans for both public and private sector investment in the war-torn country.

Alongside funding from donor countries, the EIB is providing €100m dedicated to technical assistance. This will help Ukraine to secure best-practice reconstruction advisory expertise in both Ukraine to help develop priority projects. The technical assistance will also be made available to neighbouring Moldova.

Werner Hoyer, president of the European Investment Bank, commented: “The European Investment Bank has stood side by side with Ukraine since the first days of the war and was among the first international financial institutions to respond to Ukraine’s immediate needs. Today’s decision will allow the EIB to continue operating within Ukraine in coordination with other IFIs, while longer term EU budget resource allocations for Ukraine are prepared. 

“The EU Bank’s initiative responds to calls from EU and Ukrainian leaders to remain active and contribute to meeting the country’s growing needs. As discussed with Ukraine’s deputy prime minister Oleksandr Kubrakov and the mayors of Myrhorod and Kamianske this week, reconstruction is already ongoing and Ukraine urgently requires increased assistance from international partners.”

Oleksandr Kubrakov, Ukraine’s deputy prime minister for restoration, welcomed the news, saying: “Rebuilding Ukraine and enabling our country to recover will require huge investment efforts combining technical sector expertise and financial support. The European Investment Bank is one of the key partners for rebuilding Ukraine and the new EU for Ukraine Initiative allows us to continue restoring basic services, rebuilding energy and transport networks and ensuring that Ukrainian companies can withstand the conflict.”

Along with supporting key projects, the new initiative will also enable financing to support restoration of critical infrastructure including energy, transport, health, social services and district heating, cyber security and business investment.

The EU for Ukraine initiative will support priority reconstruction and recovery investment in sectors identified by the Government of Ukraine, World Bank, European Commission and United Nations in the second Rapid Damage and Needs Assessment published earlier this month.